Janney Montgomery Scott, LLC is a full-service financial services firm that holds the second-oldest seat on the New York Stock Exchange. Founded in 1832, Janney Montgomery Scott provides financial advice and services to individual, corporate, and institutional investors. Janney Montgomery Scott independently operates as a subsidiary of The Penn Mutual Life Insurance Company. Headquartered in Philadelphia, PA, the firm has approximately 100 offices along the East Coast and over 1,000 financial consultants nationwide.
Failure of Supervision
With that many representatives, Janney Montgomery has to ensure that their supervisory measures are well-tuned and detail-oriented. Unfortunately, their disciplinary record has not shown this to be the case. In 2010, they were fined $175,000 by the Financial Industry Regulatory Authority (FINRA) for a number of violations, mostly having to do with inadequate procedures. For example, Janney Montgomery failed to enforce Anti-Money Laundering procedures among their brokers and AML compliance officers, whose duties center around preventing money laundering.
During the same period of time, they did not enforce procedures for monitoring trades done through broker’s personal computers, a dangerous practice when it comes to supervising the behavior of their representatives. In addition, Janney was fined for allowing up to 73 of their branch managers the ability to approve their own transactions, either on their accounts or their clients’, without oversight or any accountability. Clearly, this is not ideal or legal.
FINRA Grants Investors Rights
As a FINRA-licensed firm, Janney Montgomery Scott LLC is legally obligated to monitor their brokers to ensure ethical, honest trading. When there is a lack of supervision, unscrupulous behavior is allowed to occur without knowledge or punishment, costing investors thousands, even millions of dollars. When this occurs, FINRA grants wrongfully-treated investors to hold Janney Montgomery Scott legally and financially responsible for restoring their losses.
Get the Help of Our Investment Law Attorneys Today
If you think you may have lost your assets due to the negligence or fraud of a Janney Montgomery broker, you may have legal recourse to sue for your money back, even if that representative no longer works for the firm. Meyer Wilson has the resources to go up against large investment firms and recover your losses. Our attorneys recovered $350 million for our clients because we have the skill and experience to fight on your behalf.
Contact Meyer Wilson for a free case evaluation. We can help you determine the next step.